Section 961 | Relief in respect of tax relating to limited or discretionary interests

From legislation.gov.uk

1 April 2026

(1)This section applies if—

(a)United Kingdom corporation tax has been charged on a company for an accounting period on estate income from an estate treated as arising under—

(i)section 939 (estate income: limited interests in residue), or

(ii)section 940 (estate income: discretionary interests in residue),

(b)the estate is a foreign estate in relation to the relevant tax year, and

(c)United Kingdom income tax has already been borne by part of the aggregate income of the estate for the relevant tax year.

(2)If the company makes a claim under this section, the corporation tax charged on the company on that estate income is to be reduced by an amount equal to—

Formula

T \times \frac{A - C}{B - C}

where—

T is the corporation tax charged on the company,

A is so much of the aggregate income of the estate as has already borne United Kingdom income tax for the relevant tax year,

B is the aggregate income of the estate for the relevant tax year, and

C is the amount of United Kingdom income tax already borne by the aggregate income of the estate for the relevant tax year.